“What follows are verbatim excerpts from the G-20 Communiqué that
pertain to the new Financial Stability Board (be sure to read the
bullet points below).

QUOTE

Major
failures in the financial sector and in financial regulation and
supervision were fundamental causes of the crisis. Confidence will not
be restored until we rebuild trust in our financial system. We will
take action to build a stronger, more globally consistent, supervisory
and regulatory framework for the future financial sector, which will
support sustainable global growth and serve the needs of business and
citizens.

We each agree to ensure our domestic
regulatory systems are strong. But we also agree to establish the much
greater consistency and systematic cooperation between countries, and
the framework of internationally agreed high standards, that a global
financial system requires. Strengthened regulation and supervision must
promote propriety, integrity and transparency; guard against risk
across the financial system; dampen rather than amplify the financial
and economic cycle; reduce reliance on inappropriately risky sources of
financing; and discourage excessive risk-taking. Regulators and
supervisors must protect consumers and investors, support market
discipline, avoid adverse impacts on other countries, reduce the scope
for regulatory arbitrage, support competition and dynamism, and keep
pace with innovation in the marketplace.

To this end we
are implementing the Action Plan agreed at our last meeting, as set out
in the attached progress report. We have today also issued a
Declaration, Strengthening the Financial System. In particular we agree:

to
establish a new Financial Stability Board (FSB) with a strengthened
mandate, as a successor to the Financial Stability Forum (FSF),
including all G20 countries, FSF members, Spain, and the European
Commission;

that the FSB should
collaborate with the IMF to provide early warning of macroeconomic and
financial risks and the actions needed to address them;

to reshape our regulatory systems so that our authorities are able to identify and take account of macro-prudential risks;

to extend regulation and oversight to all
systemically important financial institutions, instruments and markets.
This will include, for the first time, systemically important hedge
funds; [emphasis added]

to endorse and
implement the FSF’s tough new principles on pay and compensation and to
support sustainable compensation schemes and the corporate social
responsibility of all firms; [emphasis added]

to
take action, once recovery is assured, to improve the quality,
quantity, and international consistency of capital in the banking
system. In future, regulation must prevent excessive leverage and
require buffers of resources to be built up in good times;

to
take action against non-cooperative jurisdictions, including tax
havens. We stand ready to deploy sanctions to protect our public
finances and financial systems. The era of banking secrecy is over. We
note that the OECD has today published a list of countries assessed by
the Global Forum against the international standard for exchange of tax
information;

to call on the accounting
standard setters to work urgently with supervisors and regulators to
improve standards on valuation and provisioning and achieve a single
set of high-quality global accounting standards; and

to
extend regulatory oversight and registration to Credit Rating Agencies
to ensure they meet the international code of good practice,
particularly to prevent unacceptable conflicts of interest.

We
instruct our Finance Ministers to complete the implementation of these
decisions in line with the timetable set out in the Action Plan. We
have asked the FSB and the IMF to monitor progress, working with the
Financial Action Taskforce and other relevant bodies, and to provide a
report to the next meeting of our Finance Ministers in Scotland in
November.

END QUOTE

You noticed that I highlighted the key word “all” in
the bullet points above from the G-20 Communiqué. If the FSB, in its
international wisdom, considers a financial institution or company or a
hedge fund “systemically important,” it may regulate and oversee it.
This provision extends and internationalizes the recent proposals by
Treasury Secretary Geithner and the Obama administration to regulate all firms that are deemed to be “too big to fail,” in whatever sectors of the economy they so choose.”

I see NO coverage of the FSB at ANY libertarian institution (based on a quick Google; if they have, I appreciate if it is brought to my attention).